Departmental Overview, October Home Office

Transcription

1 Departmental Overview, October 018

2 This overview summarises the work of the (the Department) including what it does, how much it costs, recent and planned changes and what to look out for across its main business areas and services. Overview How the Department is structured If you are interested in the NAO s work and support for Parliament more widely, please contact: Where the Department spends its money parliament@nao.org.uk Responding to a changing environment Exiting the European Union Based on the findings and insights of our recent audit work, in the first three parts we set out key themes which cover some of the ongoing challenges the Department faces. In part four, we set out things to look out for. PART ONE PART TWO PART THREE PART FOUR Changing nature of crime Operational delivery challenges Effective use of information What are the things to look out for? The National Audit Office scrutinises public spending for Parliament and is independent of government. The Comptroller and Auditor General (C&AG), Sir Amyas Morse KCB, is an Officer of the House of Commons and leads the NAO. The C&AG certifies the accounts of all government departments and many other public sector bodies. He has statutory authority to examine and report to Parliament on whether departments and the bodies they fund, nationally and locally, have used their resources efficiently, effectively, and with economy. The C&AG does this through a range of outputs including value-for-money reports on matters of public interest; investigations to establish the underlying facts in circumstances where concerns have been raised by others or observed through our wider work; landscape reviews to aid transparency; and good practice guides. Our work ensures that those responsible for the use of public money are held to account and helps government to improve public services, leading to audited savings of 741 million in 017. Design & Production by NAO External Relations DP Ref: Key changes to departmental expenditure since 015 Steven Corbishley Director, Home Affairs Financial Audit steven.corbishley@nao.org.uk Contents Overview About the Department How the Department is structured Where the Department spends its money Key changes to departmental expenditure since 015 Responding to a changing environment Exiting the European Union Part one About the Department The changing nature of crime Part two Operational delivery challenges Part three Effective use of information Part four What are the things to look out for? Tom McDonald Director, Home Affairs Value for Money Audit tom.mcdonald@nao.org.uk If you would like to know more about the National Audit Office s (NAO s) work on the, please contact: National Audit Office 018

3 OVERVIEW About the Department The is a ministerial department that oversees 30 agencies and public bodies. The Department is the lead government department for: immigration and passports, fire, counter-terrorism, police, drugs policy and crime. The Department set out seven goals in its 018 Annual Report 1, Cut crime and the harm it causes, including cyber crime and serious and organised crime., Provide world-class public services and contribute to prosperity. 3, Protect vulnerable people and communities. 4, Manage civil emergencies within the remit of the. 5, Control migration. 6, Reduce terrorism, and 7, Maximise the benefits of the United Kingdom leaving the European Union. The Department set out seven goals in its 018 Annual Report To meet its objectives, the Department has arranged its activities into three strands of policy and operational delivery: Homeland Security Counter-terrorism and national security activity is delivered by a community of different organisations using ring-fenced money. Public Safety The Department sets policy but outcomes are delivered through locally accountable bodies such as police and fire services with independent assurance from an inspectorate. Borders, Immigration and Citizenship The Department is responsible for policy and planning, as well as delivery through the operational management of the border and immigration systems. To meet its objectives, the Department has arranged its activities into three strands of policy and operational delivery: Cut crime and the harm it causes, including cyber-crime and serious and organised crime Homeland Security Provide world-class public services and contribute to prosperity Counter-terrorism and national security activity is delivered by a community of different organisations using ring-fenced money. Protect vulnerable people and communities 3 Strands of policy and operational delivery Manage civil emergencies within the remit of the Maximise the benefits of the United Kingdom leaving the European Union Borders, Immigration and Citizenship The Department sets policy but outcomes are delivered through locally accountable bodies such as police and fire services with independent assurance from an inspectorate. The Department is responsible for policy and planning, as well as delivery through the operational management of the border and immigration systems. Public Safety Reduce terrorism Control migration 3

4 OVERVIEW How the Department is structured This page shows a flow diagram of How the Department is structured, split into 4 areas, Activity, Policy and Governance, Operational Delivery and Inspection Body Source: National Audit Office analysis Activity Borders, Immigration and Citizenship Purpose: secure the UK s border, manage immigration and control access to citizenship. Responsibilities: UK immigration and passport controls, visas, immigration applications, border security, issuing UK passports, enforcing immigration laws and managing civil registration. Homeland Security Purpose: reduce the risk to the UK and its interests overseas by stopping terrorist attacks; stopping people becoming terrorists or supporting terrorism; strengthening protection against terrorist attacks, and mitigating the impact of terrorist attacks. Responsibilities: counter-terrorism and serious organised crime including child abuse and exploitation. Public Safety Purpose: provide strategic leadership to reduce crime, support vulnerable people, tackle extremism and manage civil emergencies and fire safety. Responsibilities: crime, policing in England and Wales, fire in England, drug policy, supporting vulnerable people including victims of child abuse and modern slavery. Policy and Governance Borders, Immigration and Citizenship Strategy Group Office of Security and Counter Terrorism Crime, Policing and Fire Group Operational Delivery UK Visas and Immigration Border Force Police forces College of Policing Immigration Enforcement HM Passport Office Locally accountable bodies Independent Office for Police Conduct Disclosure and Barring Service Migration Advisory Committee Gangmasters and Labour Abuse Authority Security Industry Authority Fire and rescue services Inspection Body 1 The National Crime Agency and the Security Service (MI5) report to the Home Secretary but sit outside the Home Offi ce structure. Locally accountable bodies are not part of the Home Offi ce. For example, in 40 out of 43 forces, police and crime commissioners are responsible for setting strategic policing priorities, engaging with the public and holding their force to account through the chief constable. The Metropolitan Police Service, Greater Manchester Police and City of London Police have different arrangements. Source: National Audit Offi ce analysis Office of the Immigration Services Commissioner Independent Chief Inspector of Borders and Immigration Her Majesty s Inspectorate of Constabulary and Fire and Rescue Services 4

5 OVERVIEW Where the Department spends its money In , the Department s gross expenditure was 15.9 billion, with an income of.8 billion, resulting in net expenditure of 13. billion. 3,4 The majority of that expenditure is spent by the Crime, Policing and Fire Group. The main sources of income for the Department are visa and passport fees. Crime, Policing and Fire Group 11.3bn Income 67.4m Borders, Immigration & Citizenship Policy and Strategy Group 38.1m Income 5.1m Office for Security and Counter Terrorism 1.bn Income 178.1m Total expenditure HM Passport Office 63.7m Income 435.6m Total expenditure bn Total income.8bn Enablers (back office functions) 1 1.1bn Income 197.7m Core Department Central services 1 Back-offi ce functions (referred to as Enablers in the accounts) include Corporate Services, Communications Directorate, Human Resources Directorate and Strategy, Delivery and Private Offi ce Group. Figures for the Department are taken from its Statement of Operating Costs by Operating Segment (note ), within the Department s Annual Report and Accounts for the year ending 31 March Data may not sum to total due to rounding. 4 Total Net Expenditure = Resource DEL + Annually Managed Expenditure + Adjustments for non-cash transactions. Source: Home Offi ce Annual Report and Accounts , July 018 Immigration Enforcement 430.8m Income 33m Border Force 5.6m Income.m UK Visas & Immigration 1.1bn Income 1.6bn 5

6 OVERVIEW Key changes to departmental expenditure since 015 Capital Investments In the 015 Spending Review, the (the Department) planned capital investments of more than 1.3 billion by Capital investment can include spending on investment projects, capital grants and maintenance of assets. Much of this was intended to fund border/ immigration-related projects and to streamline the core Department processes. The Department plans to spend an additional 1 billion to overhaul the Emergency Services Network (ESN). 1.4 billion of investment in new counterterrorism capabilities for the security and intelligence services; and Counter-terrorism spending The government is spending billion per year in counter-terrorism, as part of the Summer Budget 015. The 015 Spending Review set out that a further 30% would be spent on key counter terrorism capabilities across government including: The government allocated an additional 50 million to counter-terrorism policing in and an additional 8 million to the police to cover costs of responding to the terrorist attacks in London and Manchester in This graph shows that the Resource Departmental Expenditure Limits increased by 300 million between and and decreased slightly in Source:, Annual Report and Accounts to and HM Treasury, Spending Review and Autumn 1 Statement 015 The s budget for day-to-day spending, estimate and outturn, to million of additional investment in the Department to protect UK citizens from terrorist threats. Borders and immigration system In the 015 Spending Review, the Department planned resource savings of 5% by through a fully self-funded borders and immigration system. In , the Department was allocated 395 million to prioritise programmes to realise EU exit. to prioritise programmes to realise EU exit. This graph shows that Capital Departmental Expenditure Limits are expected to fall by 100 million in to 400 million and remain at this level to 00-1 Source:, Annual Report and Accounts to and HM Treasury, Spending Review and Autumn Statement 015 The s budget for capital grants and maintenance of assets, estimate and outturn, to 00-1 Expenditure ( bn) Expenditure ( bn) million Capital Departmental Expenditure Limits1 are expected to fall by 100 million in to 400 million and remain at this level to In , the Department was allocated Resource Departmental Expenditure Limits (RDEL) increased by 300 million between and and decreased slightly in Outturn Resource DEL budgets have only been set for some departments for For the rest, including the, these budgets will be set in full at the next Spending Review. Estimate Outturn Resource Departmental Expenditure Limits: planned and controlled expenditure on day-to-day resources and administration costs across the period of each Spending Review. 1 Capital Departmental Expenditure Limits: Planned and controlled capital spending across the period of each Spending Review. 3 Net estimate = Net estimate of Resource DEL and excludes depreciation. Source:, Annual Report and Accounts to and HM Treasury, Spending Review and Autumn Statement 015 The underspend in Capital DEL at 1.7 million represented 3.5% of the actual 613 million budget. Source:, Annual Report and Accounts to and HM Treasury, Spending Review and Autumn Statement 015 Net estimate

7 OVERVIEW Responding to a changing environment 1/ The (the Department) operates in a fast moving and highly visible environment, which is shaped by external developments such as changes in immigration patterns and terrorist attacks. In response it has to introduce legislation, update its strategies and then deliver projects in partnership with a range of public bodies and private sector partners to achieve its objectives. Top fi ve current contracts by value awarded by the Department Two contracts, covering the Airwave Mobile Communications Programme and Asylum Accommodation and Support Services, account for the majority of expenditure in the s top five contracts Legislative changes The Counter-Terrorism and Border Security Bill (018) was introduced in the House of Commons on 6 June 018 and aims to update and close gaps in existing counter-terrorism legislation to ensure that it is fit for the digital age and reflects contemporary patterns of radicalisation. The Offensive Weapons Bill (018) was introduced in the House of Commons on 0 June 018 and will bring new powers to tackle knife crime, acid attacks and deal with the risk that criminals could obtain powerful firearms. Policy changes In June 018 the Department published its updated Counter Terrorism Strategy as a response to the 017 terrorist attacks. In April 018, the Department published its Serious Violence Strategy, responding to recent increases in serious violence including knife crime, gun crime and homicide. In January 018, the Department announced a set of voluntary commitments on the responsible sale of corrosive substances. A strategy on Serious and Organised Crime is expected to be published in 018 following a review of the 013 strategy. Asylum Accommodation and Support Services [Various] Emergency Services Network Lot 3 EE Ltd Public Safety Radio Communications Service Airwave Solutions Ltd/ Motorola 4.4bn 4.0bn 0.74bn Top five current contracts by value awarded by the Department 1, Public Safety Radio Communications Service, Airwave Solutions Ltd/Motorola 4.4 billion, Asylum Accommodation and Support Services [Various] 4.0 billion 3, Emergency 1 This Services contract Network has Lot subsequently 3, EE Ltd 0.74 billion been won by Gemalto UK Ltd, in April , Support Payments to Eligible Users (Asylum) Sodexo Motivation Solutions Ltd 0.44 billion The values shown above are based on fi gures available on Contracts Finder. These amounts do not necessarily 5, Passport Design and Production, De La Rue International Ltd 0.4 billion refl ect the amount paid by the Home Offi ce in a specifi c year or to date. Source: National Audit Office analysis of Contracts Finder data Source: National Audit Offi ce analysis of Contracts Finder data Support Payments to Eligible Users (Asylum) Sodexo Motivation Solutions Ltd 0.44bn Passport Design and Production De La Rue International Ltd 1 0.4bn 7

8 OVERVIEW Responding to a changing environment The Department is responsible for 1 of government s 133 major projects, which in turn support all aspects of its work, including border operations, asylum accommodation, emergency services capabilities and corporate performance. The Department is responsible for 1 of government s 133 major projects, which in turn support all aspects of its work, including border operations, asylum accommodation, emergency services capabilities and corporate performance. The Infrastructure and Projects Authority (IPA) rates each project s progress using a Delivery Confidence Assessment scheme. Our previous concerns about the Department s ability to manage these projects has led us to audit the Emergency Services Mobile Communications Programme and the Disclosure and Barring Services Programme and keep a watching brief on the others. Page 1 covers these two programmes in more detail. / Programmes and projects, with IPA ratings as at September 017 Emergency Services Mobile Communications Programme (ESMCP) Cyclamen Project Red Intended to replace the mobile communications service currently used by the three emergency services and other public safety users. Amber Cyclamen equipment provides the capability to detect and deter the illicit movement of radiological materials into the United Kingdom. Digital Services at the Border (DSAB) Smarter Working Programme Amber Red Intended to replace a number of obsolete IT systems currently used at the border. Amber Helping to modernise ways of working and embed a smart working culture through better support for people, improved technology and workspaces. Disclosure and Barring Service (DBS) Programme National Law Enforcement Data Programme (NLEDP) Amber Red Intended to unify operations, introduce electronic applications and referrals, and enable new services, with the aim of delivering cost reductions and service improvements. Amber Aims to replace the current Police National Computer (PNC) and Police National Database (PND) systems with the Law Enforcement Data Service (LEDS). Immigration Platform Technologies (IPT) Asylum Accommodation and Support Transformation (AAST) Amber Intended to deliver technology and information systems to support the immigration service. Amber Intended to deliver an asylum accommodation and support model that will ensure the safety and security of service users and their host communities. Amber Amber Metis Programme Intended to transform the way the delivers its back-office processes. Metis will comprise a suite of applications which include enterprise resource planning (ERP), customer relationship management (CRM) and human capital management (HCM). Technology Platforms for Tomorrow (TPT) Aims to overhaul IT across the Department, impacting around 9,000 staff, delivering a new IT operating system, and replacing the mobile phone estate with modern smartphones. Note: A Delivery Confi dence Assessment is an evaluation of a project s likelihood of achieving its aims and objectives and doing so on time and on budget. It refers to a fi xed point in time, using a fi ve-point scale: Red, Amber/Red, Amber, Amber/Green and Green. Source: Home Offi ce, Home Offi ce Government Major Projects Portfolio data, 017, July 018 Amber Green Amber Green Biometrics (HOB) Programme Intended to deliver improvements to the services supporting fingerprints, DNA and facial images. Communications Capabilities Development (CCD) Programme Intended to help ensure police, wider law enforcement, security and intelligence agencies can lawfully obtain, manage and use communications data and intercepted content to detect, prevent and disrupt crime. 8

9 OVERVIEW Exiting the European Union The Department s goals Work streams Funding and spending Maximise the benefits of the UK leaving the EU by implementing a new immigration system. Keep British citizens safe as the UK leaves the EU, by agreeing a comprehensive new security, law enforcement and criminal justice partnership with the EU to fight shared threats from terrorism and organised crime. The Department has 10 active work streams including: immigration, asylum, the Common Travel Area, passports, customs operational delivery, internal security and law enforcement, regulatory systems, and equalities. In , the Department received 60 million from HM Treasury to prepare for EU exit, with 1 million spent on strengthening border controls and 4 million on the Settled Status Scheme. In , it was allocated 395 million to prioritise programmes to realise EU exit. The Department is responsible for delivering immigration arrangements and managing the new arrangements for EU citizens visiting the UK. Its three immigration directorates would implement the changes: UK Visas & Immigration, Immigration Enforcement and Border Force. The government will set out the UK s future immigration system, with an immigration white paper later in 018. Border Force is responsible for securing the border and managing flows of people and goods entering the UK. HM Revenue & Customs also has important border responsibilities for collecting tax, duties and excise, and processing customs declarations. The UK border (017) found that demand for border services could increase following EU exit: extending the existing entry regime for non European Economic Area (EEA) nationals EU citizens living in the UK and their family members to all EEA arrivals could increase the number will need to apply under the EU Settlement Scheme The Department has significant operational responsibilities to deliver changes arising from the UK s exit from the EU. The uncertainties are considerable, but these changes could affectofthedecisions Department across three main areas: about permitting people to cross 1, Immigration to obtain their new UK immigration status. the border byuk30%; and Immigration Enforcement and Border Force. The The Department is responsible for delivering immigration arrangements and managing the new arrangements for EU citizens visiting the UK. Its three immigration directorates would implement the changes: Visas & Immigration, government will set out the UK s future immigration system, with an immigration white paper later in 018. In tojune 018, Department published a Statement EU citizens living in the UK and their family members will need apply under the EU the Settlement Scheme to obtain their new UK immigration status. the number of decisions about permitting goods In June 018, the Department published a Statement of Intent setting out the basis of the EU Settlement Scheme it plans to begin opening later this year. of Intent setting out the basis of the EU Settlement In August 018, the Department began a pilot of the new application process for the EU Settlement Scheme in the North West of England, following the standard approach for the launch new government services. could increase by 360%. to ofcross the border, Border services Scheme it plans to begin opening later this year. Border Force is responsible for securing the border and managing flows of people and goods entering the UK. HM Revenue & Customs also has important border responsibilities for collecting tax, duties and excise, and processing customs declarations. The UK border (017) found that Parliament has identified specific concerns demand for border services could increase following EU exit: In August extending the existing entry regime for non European Economic Area (EEA)018, nationals tothe all EEADepartment arrivals could increasebegan the numberaof pilot decisionsof about permitting people to cross the border by 30%; and around the future operation of the border the number of decisions about permitting goods to cross the border could increase by 360%. the new application process for the EU Settlement Parliament has identified specific concerns around the future operation of the border between Northern Ireland and the Republic of Ireland and the maritime border between Wales and the Republic of Ireland. Ireland and the Republic of between Northern 3, Policing and security cooperation Scheme in the North West of England, following Ireland andcooperation the maritime The government currently cooperates with other EU member states and agencies on security, law enforcement and justice, including practical cooperation arrangements. It intends that effective between the UKborder and the EU between continues in thesewales areas. theof Passenger standard approach for arrangements the launch of the new Changes to areas such as cooperation with Europol, exchange Name Records and extradition may affect Department s ability to access capabilities that currently support cross border law enforcement. government services. and the Republic of Ireland. Policing and security cooperation The government currently cooperates with other EU member states and agencies on security, law enforcement and justice, including practical cooperation arrangements. It intends that effective cooperation between the UK and the EU continues in these areas. Changes to areas such as cooperation with Europol, exchange of Passenger Name Records and extradition arrangements may affect the Department s ability to access capabilities that currently support cross border law enforcement. Border services Immigration The Department has significant operational responsibilities to deliver changes arising from the UK s exit from the EU. The uncertainties are considerable, but these changes could affect the Department across three main areas: 9

10 PART ONE The changing nature of crime Crime recorded by the police can be affected by changes in reporting rates or police activity. The Office for National Statistics (ONS) advises caution in interpreting increases in offences. However, the ONS identified genuine increases in less frequent, but higher harm violent offences, such as robbery and possession of weapons, which includes those involving knives or sharp instruments. Police recorded crime by offence, in England and Wales, to Recorded offences (thousands) 6,000 5,500 5,000 4,500 4,000 Crime trend data are difficult to interpret and need to be treated with caution but nonetheless there are indicators of changing patterns to which the Department is seeking to respond. In the year ending March 018, results from the Crime Survey showed that crime was at a similar level to that reported in 016. This follows a long-term fall in crime since the 1990s, although it is too early to say whether the stability in crime levels indicates a change in the overall trend or simply a pause. 3,500 3,000,500,000 1,500 1, ,150, ,381,075 1, ,063 1,901 1, ,08 1,845 1, ,168 1,751 1, ,508 1,758 1, ,97 1,878, ,516,010, Total recorded offences Theft Other offences Criminal damage and arson Drug offences Robbery Miscellaneous crimes against society Possession of weapons 500 Police-recorded crime data provide some insight into areas that the survey does not cover. These data show that crime recorded by the police has increased consistently since For example, the ONS highlights that ongoing work by police forces over the past three years to improve crimerecording practices has driven an increase in recorded violence against the person. Note 1 Other offences includes violence against the person, sexual offences, public order offences and fraud offences. These offences have been grouped together as they have been identified as being subject to previous under-reporting. Data may not sum to total due to rounding. This is a figure showing police recorded crime by offence, in England and Wales from to Source: Audit Offifor cenational analysis of Offi Source: National AuditNational Office analysis of Office Statistics data ce for National Statistics data Although crime data present a mixed picture, the (the Department) and the police forces it funds are having to respond to the changing nature of crime. They need to respond to crimes such as modern slavery, child sexual exploitation and online fraud that have previously been under-reported or that have increased in prevalence. These cases are often complex and place substantial demands on police resources. In addition, the terrorist threat remains acute and continues to evolve rapidly. 1/ 10

11 PART ONE The changing nature of crime Work we have undertaken shows how particular crime types have evolved. Online crime in particular continues to evolve quickly because of the constantly changing opportunities to commit fraud through rapid changes in technology. As a result, the Department is having to reconsider its strategies and its ways of working with others in both private and public sectors to ensure it can continue to address these areas of crime effectively. Fraud has become the most commonly experienced crime in England and Wales, and most takes place online. Online Fraud (017) found that there were around two million estimated cyber-related incidents in 016. The true cost of online fraud is unknown, but is likely to be billions of pounds. One estimate was that individuals lost around 10 billion and the private sector around 144 billion to fraud in 016. A majority of provisions of the Criminal Finances Act 017 came into force on 31 January 018, which the Department sees as a key element of delivering the Government s Action Plan for tackling financial crime. / Why online crime is a greater challenge than traditional crime This flow chart shows why online crime is a greater challenge than traditional crime; new technologies and increasing use of the internet mean online crime can happen on a greater scale, at a faster speed and reach more victims than traditional crime Source: National Audit Office analysisand and Home Office, Modern use Crime Prevention Marchmean 016 online crime can happen New technologies increasing of the Strategy, internet on a greater scale, at a faster speed and reach more victims than traditional crime Traditional crime must have three elements to take place: offender, location and victim There are a limited number of victims The internet has vastly increased opportunities to commit fraud, and emerging technology creates new types of threat Criminals can target thousands of victims quickly without any direct contact, and can hide their identities with ease Offender Victims and offenders share closer locations Offender Traditional crime Location Online fraud Victim Location Victim Increasing use of the internet exposes people to greater risks Referrals of potential victims of modern slavery to the National Referral Mechanism have increased year-on-year since 01. Reducing Modern Slavery (017) reported that the Department s 013 estimate of the overall social and economic cost to the UK of human trafficking for sexual exploitation alone was 890 million. The report also found that the Department significantly underestimated the cost of tackling modern slavery. Despite a revision to the cost estimates for victim support services in 016, the Department is still overspending against the contract, and forecasts that it will cost around 90 million, instead of 53. million, for the period to On 30 July 018, the Department announced plans to launch an independent review of the Modern Slavery Act 015. Source: National Audit Office analysis and, Modern Crime Prevention Strategy, March 016 Between March and June 017, London and Manchester saw four attacks that claimed the lives of 36 people and placed renewed pressure on the Department and law enforcement partners. Financial sustainability of police forces in England and Wales (018) found that there is strong evidence the police are facing increased pressure compared with 015, most notably from a changing terrorist threat. In June 018, the Department revised its counter-terrorism strategy, which builds on its existing model of Prevent, Pursue, Protect and Prepare. 11

12 PART TWO Operational delivery challenges 1/ The (the Department) faces significant operational delivery challenges. We have seen weaknesses in its identification and management of risks and some examples of poor management of its contractors. Management of key risks in programmes present a challenge for the Department. The Emergency Services Network (ESN) is intended to replace the Airwave system currently in use by 019. Upgrading emergency service communications: the Emergency Services Network (016) raised concerns about the project s high level of implementation risk and concluded that the programme s management of its key risks needed to improve if it was to deliver ESN successfully. Despite the high risks, the Department adopted ambitious timelines for delivery, and by 016 the programme was already five to 10 months behind schedule. The Department is challenged by inadequate contracting procedures. Following publication of our report it was confirmed that the delivery timetable for ESN was becoming longer. In February 018 the Department confirmed that the delay was a minimum of 15 months. The Department is now undertaking a major review of the ESN programme. The review will assess how ESN might best be delivered going forward, and examine its approach to governance and programme management. Main Emergency Services Network (ESN) risks by project phase October 015 July 017 January 00 Contract award Design, build and testing complete ESN operational Main risk Technical User take up Commercial arrangements Programme delayed/fails Programme delayed Operational and financial benefits not realised Costs rise Impact of risk materialising 016 Operate and benefits realisation User organisations transition Design, build and test 1 Dates are those planned in the full business case. Contract with Kellogg Brown and Root was signed in September 015; contracts with Motorola and EE were signed in December 015. Source: National Audit Office analysis Disclosure and Barring Service (DBS) (018) found that the delivery of its programme to modernise its IT systems was running more than three and a half years late, and anticipated costs had increased. The Department had followed a commercial strategy that allowed varying interpretations of the contract, in particular of the underlying requirements, which led to disputes about whether the Department or its contractor was responsible for the delays in the delivery of the project. We also found that the Department was not tracking whether the programme was achieving its intended benefits. 1

13 PART TWO Operational delivery challenges / The Department also faces delivery and coordination challenges when it relies on other government bodies, law enforcement agencies and private sector contractors to play a role. The Department has shown limited ability in influencing partners. Online Fraud (017) found the Department had to influence taskforce partners to take responsibility in the absence of a more formal legal or contractual lever. In June 018 the Department reported on progress, including introduction of measures of the performance of the Joint Fraud Taskforce and confirming that it had commissioned an independent review of the taskforce. Weak oversight remains a challenge for the Department. The oversees six Example of roles and responsibilities in tackling online fraud Growth in online fraud presents new and significant challenges for the, as many other government bodies, law enforcement agencies and industry play a role. These roles are set out below Prevention Raise awareness of crime and change people s behaviour Reporting Share information on cases between bodies Protect people at risk of becoming victims Collect and analyse data Disruption Develop capabilities to tackle fraudulent activity Prosecution Ensure effective legal powers are available Increase costs and/or reduce benefits of crime Improve international cooperation Cabinet Office Ministry of Justice National Cyber Security Centre City of London Police (including Action Fraud and the National Fraud Intelligence Bureau) Police forces Police and Crime Commissioners Crown Prosecution Service National Crime Agency Regional Organised Crime Units National Trading Standards Industry During , the strengthened its sponsorship arrangements over its ALBs and also devised a protocol with their ministers so that the annual reports could be cleared more effectively. As a result, of the six ALBs, three laid their audited annual reports and accounts for by the summer recess 018, with plans to lay the remaining three before Parliament s Christmas recess. The Gangmasters and Labour Abuse Authority laid its accounts in July 018. Cifas UK Finance 3 Citizens and businesses Government organisations Law enforcement None of the six ALBs laid their annual reports and accounts for by the summer Parliamentary recess in July 017, with two subsequently missing the January 018 statutory deadline. Funding and Governance of Broken Rainbow (017) raised concerns about the Department s weak grant management, noting that it did not meet its own requirements for monitoring its grant. The Government Internal Audit Agency also reported on the whole of the Department s grant monitoring mechanisms in March 015, and found a number of weaknesses, resulting in a low assurance rating for the Department s grant management process. Industry, regulators and organisations set up to tackle fraud Citizens and businesses 1 The Department is included under Reporting and Disruption to indicate areas of oversight. Credit industry fraud avoidance system (Cifas) is a not-for-profit fraud prevention membership organisation. 3 From 1 July 017, the finance and banking industry operating in the UK is represented by a new trade association, UK Finance. Financial Fraud Action UK is now integrated into UK Finance. Source: National Audit Office analysis independent arm s length bodies (ALBs) and gives grants to a wide range of delivery partners. 13

14 PART THREE Effective use of information The (the Department) faces a range of challenges in obtaining appropriate data of sufficient quality, resulting in challenges to plan and manage operations, while the use of legacy IT systems adds to the complexity and risk in upgrading systems and supporting performance improvements. The Department has, on occasion, been unclear about anticipated demand prior to launching new or additional services, resulting in additional costs and a poor experience for service users. Gaps in performance data make it harder for the Department to ensure consistent measures are in place to allow for trend analysis and benchmarking. The Department s data quality can be weak The UK border (017) found that, the government is increasingly collecting and using data to improve border management. Despite this, it has struggled to get good quality data, or get the benefits of computerised systems, in a number of front-line systems. It has also struggled to effectively join up and use its internal management information within and across agencies. These gaps and weaknesses in collecting and sharing data mean that border management is not as good as it could be. In March 018, the Department stated that the Border Planning Group had established arrangements for coordinating work, not only with government departments, agencies and their arm s-length bodies, but also with local authorities and all the non-governmental organisations responsible for managing or enabling the border. 1/ Estimated coverage of passport and booking data This table from E-borders and successor programmes (015) shows how the improved its collection of passports and booking data over time 003 December 010 March 014 (%) (%) (%) Latest (September 015) (%) Passport data, inbound Passport data, outbound Booking data 0 Unknown Unknown e-borders target (passport data only) 1 Most data are received in advance of departure although some are only received after the vehicle has left its port of origin. Inbound passengers will also be subject to passport verification at the border itself. Data are calculated based on number of journeys enabled to provide data to the Department and estimated number of passengers on the flight/train/ship concerned. It does not take account of whether data were actually received or not. 3 Journeys to and from the UK by land, general aviation and general maritime are excluded. 4 Data for December 010 are currently based on a March 011 estimate, as this is the earliest comparable estimate available within the Department. If travel within the EU is excluded then the estimate rises from 54% to 87%. 5 Booking data coverage was only measured from March 015. This table from E-borders and successor programmes (015) shows how the improved its collection of passports and booking data over time Source: National Audit Office analysis of data E-borders and successor programmes (015) found relying on legacy systems means that current processes involve extensive manual effort, duplication of effort and restrictions on the use that can be made of travel history records. In December 017 the Department stated that as many as 30 IT systems would need to be modified or replaced to prepare for UK exiting the EU. As part of that work the Digital Services at the Border (DSaB) programme, the successor to the e-borders programme, is currently scheduled to be delivered by March 019. Ongoing use of legacy IT Source: National Audit Office analysis of data 14

15 PART THREE Effective use of information / Modern Slavery budgets This table shows that the has not brought together all of the budgets for tackling modern slavery across government Funding Period million Victim care contract with the Salvation Army funded by and Ministry of Justice to s official development assistance budget to tackle modern slavery with countries from which the UK sees a large number of victims to European Union Asylum, Migration and Integration Fund funding for Adult Asylum Seeker Victims of Modern Slavery Care and Coordination Services. October 017 to September Funding to support the Gangmasters and Labour Abuse Authority (GLAA), to tackle labour exploitation including modern slavery across the economy Police Transformation Fund to help law enforcement agencies tackle modern slavery to s Modern Slavery Unit budget UK Visas and Immigration s national referral processing hub budget The budgets shown do not include all budgets spent by government tackling modern slavery, for example the budgets spent by the National Crime Agency (NCA), Crown Prosecution Service, police forces, intelligence agencies. The does not monitor these budgets. The NCA can use all of its capabilities in the work it undertakes on tackling modern slavery, drawn from across the agency. The NCA s total budget in was 464 million. This is allocated flexibly, according to need and operational activity. 3 Some of these budgets include funding for tackling modern slavery outside the UK. 4 We have only included known budgets of more than 1 million. Source: and National Crime Agency The Department has, on occasion, been unclear about anticipated demand for services prior to launching new or additional services. Disclosure and Barring Service (DBS) (018) found that the Department had not collected systematic data about why the updated service, which was launched in 013 and intended to increase customer use, has been used less than expected. In July 01, the expected.8 million paying users by , 69% of all transactions. In 014, DBS cut this forecast to 0.9 million, 0% of transactions. The did not run a pilot or engage with potential users of the updated service before committing to the programme and DBS has not collected systematic data about why people are not using it. The has not brought together all of the budgets for tackling modern slavery across government Gaps in performance data continue to put pressure on the Department s ability to understand performance. Online Fraud (017) found no consistent reporting of fraud in major banks annual reports and accounts, and no public information on losses incurred by individual banks. In June 018, the Department stated that it supported the policy aim of increased transparency and that the financial sector s concerns about the potential consequences of publishing such data were risks which will need to be explored and managed. The Department does not always gather sufficient information to manage or lead a system involving other bodies. Reducing Modern Slavery (017) found the Department had no information on how much it spends tackling modern slavery across government, or how effective that expenditure is. In June 018, the Department announced reforms to the National Referral Mechanism, stating the reforms will include decisions being made in a more efficient and streamlined way, and additional independent scrutiny that will ensure quality decision-making. 15

16 PART FOUR What are the things to look out for? Exit from the European Union Ongoing preparations for EU Exit The Home Secretary and Permanent Secretary recognise these preparations as one of the highest priorities for the Department. These preparations should account for a range of potential outcomes, including the possibility of a no deal scenario. Recognised risks relating to EU Exit 01 Parliament found risks remain over how the residence and immigration status of EU nationals will be communicated and what services will be provided to ensure a smooth transition. It also found existing processes to support the UK s decision Exit to from leave the EU the to be European under strain and under-resourced. Union Windrush Unknown impacts of EU Exit The Department faces considerable unknown impacts on the Border Force (for example, customs infrastructure, staffing requirements, differentiation of goods and services) and other border-related activities. The Border Planning Group is considering the implications of EU Exit scenarios for each activity and will have to balance a pragmatic approach to border controls to ensure the secure flow of goods and people at the border with opportunities to re-design Ongoing preparations for EU Exit systems and processes for the longer term. Windrush The Home Secretary and Permanent Secretary recognise The Home Secretary has apologised for the distress Windrush as a priority The Home Secretary these has preparations apologised for the distress as one caused of to people the highest of the Windrush priorities generation. He for has the stated the government s caused priority to support people those of who the have struggled Windrush to demonstrate generation. their right to be He in the has United Kingdom. Transparency Department. on progress These preparations should account for a stated the government s priority to support those who The Home Affairs Committee recommended the promised permanent and sustainable solution should be implemented transparently and measurably, specifically procuring detailed figures on the number of people affected, through wrongful denial range of services, of potential detention, or removal. outcomes, including the possibility of a have struggled to demonstrate their right to be in the Clarity, detail no and compensation deal scenario. United Kingdom. The Department needs to provide clarity and detail on proposed measures to confirm and document citizens rights to be in the UK, and to effectively deliver compensation for those suffering financial loss as a result of difficulties proving their immigration status. The government has announced a series of measures including the establishment of The Windrush Taskforce in April 018, to make arrangements for those who need help. It has also proposed a compensation scheme to help redress the impact on the Windrush generation who have faced difficulties in demonstrating their lawful status under the immigration system. Managing projects which use technology The opportunities of digital services Taking advantage of new technologies is vital to reducing costs and meeting changing user behaviours. Digital services could create opportunities in developing premium customer services in passport applications, effectively delivering anti-violent Recognised crime campaigns, and risks supporting relating data management to and EU decision-making Exit in anti-modern slavery operations. Transparency They also provide opportunities on for progress meeting challenges to border security presented by Brexit. The police and digital technology The police sector Parliament has set its own found strategic risks direction, remain Policing Vision over 05. how The strategy the sets residence out how the sector and will improve The policing, Home including how Affairs digital policing Committee will make easier recommended for the public to make the contact with the police and enable the police sector to make better use of digital intelligence and evidence. immigration status of EU nationals will be communicated promised permanent and sustainable solution should be Poor delivery of IT projects However, the and Department what has services a poor record of will delivering be provided IT projects on time to and ensure on budget. a It also smooth has a poor record of making best use of its systems to improve its processes. Until this changes it is unlikely that IT programmes will deliver step-changes in performance needed. The NAO will continue its oversight of the ESN and DBS programmes. transition. It also found existing processes to support the UK s decision to leave the EU to be under strain and under-resourced. 0 Windrush as a priority implemented transparently and measurably, specifi cally procuring detailed fi gures on the number of people affected, through wrongful denial of services, detention, or removal. 03 Managing projects which use technology The opportunities of digital services Taking advantage of new technologies is vital to reducing costs and meeting changing user behaviours. Digital services could create opportunities in developing premium customer services in passport applications, effectively delivering anti-violent crime campaigns, and supporting data management and decision-making in anti-modern slavery operations. They also provide opportunities for meeting challenges to border security presented by Brexit. The police and digital technology The police sector has set its own strategic direction, Policing Vision 05. The strategy sets out how the sector will improve policing, including how digital policing will make it easier for the public to make contact with the police and enable the police sector to make better use of digital intelligence and evidence. Unknown impacts of EU Exit Clarity, detail and compensation Poor delivery of IT projects The Department faces considerable unknown impacts on the Border Force (for example, customs infrastructure, staffi ng requirements, differentiation of goods and services) and other border-related activities. The Border Planning Group is considering the implications of EU Exit scenarios for each activity and will have to balance a pragmatic approach to border controls to ensure the secure fl ow of goods and people at the border with opportunities to re-design systems and processes for the longer term. The Department needs to provide clarity and detail on proposed measures to confi rm and document citizens rights to be in the UK, and to effectively deliver compensation for those suffering fi nancial loss as a result of diffi culties proving their immigration status. The government has announced a series of measures including the establishment of The Windrush Taskforce in April 018, to make arrangements for those who need help. It has also proposed a compensation scheme to help redress the impact on the Windrush generation who have faced diffi culties in demonstrating their lawful status under the immigration system. However, the Department has a poor record of delivering IT projects on time and on budget. It also has a poor record of making best use of its systems to improve its processes. Until this changes it is unlikely that IT programmes will deliver step-changes in performance needed. The NAO will continue its oversight of the ESN and DBS programmes. 16